One of the broker network’s main lenders is applying to the Minister of Finance for a Schedule I bank charter.
has applied for the same designation used by the big banks and – if the move proceeds -- will be named Home Trust Bank.
"The main purpose of applying for the bank charter right now is to help us grow and diversify our deposit base," said Gerald M. Soloway, CEO of Home Trust and Home Capital in an official release. "We have been very successful with our Oaken Financial branded deposit products and the bank would support and carry that initiative forward."
According to the release, Home Trust will continue to rely largely on broker relationships for its funding. The move will enter the review stage once the notice period is over.
“Once the official notice period is over, the Office of the Superintendent of Financial Institutions (OSFI) will review the application and make a recommendation to the Minister of Finance,” the official release states. “The receipt by OSFI of an application is not an indication that the application will be successful.”
Home Trust scored a respectable 3.79 out of a possible 5 in CMP’s most recent Brokers on Lenders survey.
“Home Trust is the best lender for sure,” one broker wrote in the survey. “Their underwriters are trained to help brokers to close the deals while other underwriters (at other lenders) are trying to find reasons to decline deals.”
Home Trust scored 3.92/5 in the underwriter support category this year.